In 1997, total worldwide military and arms spending was approximately one-third lower than ten years ago, at the end of the Cold War. Nonetheless, in addition to being the world leader in arms transfers, the United States continues to dominate the development of military technology. According to SIPRI, the U.S. military research and development budget was more than seven times that of second-place France. In 1997, SIPRI found that the world spent $58 billion on military R&D, of which the United States spent $37 billion. In terms of overall national military spending, the Pentagon’s most recent Quadrennial Defense Review, concluded in May 1997, envisaged defense budgets in the range of $250-260 billion until the end of time—an amount vastly greater than anything that might be spent by any conceivable combination of adversaries. The defense budget for the year 2000 was $267.2 billion, plus augmentations in order to pay for the Kosovo war.
Together with NATO, Japan, South Korea, and Israel, the United States accounts for 80 percent of the world’s total military spending. In 1995, the United States alone outspent Russia, China, Iraq, Syria, Iran, North Korea, Libya, and Cuba combined, by a ratio of two to one; with its allies, it outstripped all potential adversaries by a ratio of four to one. If the comparison is restricted to only those countries considered regional threats by the Pentagon— the “rogue states” of Iraq, Syria, Iran, North Korea, Libya, and Cuba—the United States outspent them twenty-two to one.
Interestingly enough, maintaining access to Persian Gulf oil requires about $50 billion of the annual U.S. defense budget, including maintenance of one or more carrier task forces there, protecting sea lanes, and keeping large air forces in readiness in the area. But the oil we import from the Persian Gulf costs only a fifth that amount, about $11 billion per annum. Middle Eastern oil accounts for 10 percent of U.S. consumption, 25 percent of Europe’s, and half of that of Japan, which contributes in inverse proportion to maintaining a G-7 military presence there. It is not that Europe and Japan are incapable of securing their own oil supplies through commercial treaties, diplomacy, or military activity, but that America’s global hegemony makes it unnecessary for them to do so.
One of the things this huge military establishment also does is sell arms to other countries, making the Pentagon a critical
According to the Stockholm International Peace Research Institute, the five leading arms suppliers for the period 1993 through 1997 were the United States, Russia, England, France, and Germany, though total American sales were some $14 billion greater than those of the other four combined. SIPRI has found that the five leading arms purchasers for that period were Saudi Arabia, Taiwan, Turkey, Egypt, and South Korea, each of which spent between $5 billion and $10 billion on arms over this five-year period.29 Japan was the second-biggest purchaser of high-tech weapons. All the leading purchasers were close American allies or clients.
Both the United States government and the world’s arms dealers claim that the arms trade has declined since 1987, the benchmark year for the Cold War. However, this “decline” is based almost entirely on declining arms sales by the former Soviet bloc—and it is likely that the 1987 estimates of arms sales by the former Soviet Union were as inflated as the estimates of, for example, the Soviet naval threat during the 1980s. American arms sales in any case have actually increased in the years since the Cold War ended. By 1995, according to its own Arms Control and Disarmament Agency, the United States was the source of 49 percent of global arms exports. It shipped arms of various types to some 140 countries, 90 percent of which were either not democracies or were human rights abusers.
In November 1992, presidential candidate Bill Clinton announced that he would make it his policy “to reduce the proliferation of weapons of destruction in the hands of people who might use them in very destructive ways.” In February 1995, President Clinton released his new arms export policies. They renewed old Cold War policies even though the Cold War had clearly ended, but they emphasized the commercial advantages of foreign arms sales. According to the Clinton White House, the United States’ arms export policies are intended to deter aggression; “promote peaceful conflict resolution and arms control, human rights, [and] democratization”; increase “interoperability” of the equipment of American and allied armies; prevent the proliferation of weapons of mass destruction and missiles; and “enhance the ability of the U.S. defense industrial base to meet U.S. defense requirements and maintain long-term military technological superiority at lower costs.”30 One of the arms industry’s chief lobbyists commented, “It’s the most positive statement on defense trade that has been enunciated by any administration.”31 But despite the doublethink language of the White House, there are certain essential contradictions in arms sales policy that cannot be papered over. The Pentagon’s global industrial policy, which keeps its corporate support system in place and well funded, regularly overrides more traditional foreign policy concerns, creating many potential long-term problems that may, in the end, prove beyond all solution. Arms sales are, in short, a major cause of a developing blowback world whose price we have yet to begin to pay.
In many cases, for instance, the United States has been busily arming opponents in ongoing conflicts—Iran and Iraq, Greece and Turkey, Saudi Arabia and Israel, and China and Taiwan. Saddam Hussein of Iraq, the number-one “rogue” leader of the 1990s, was during the 1980s simply an outstanding customer with an almost limitless line of credit because of his country’s oil reserves. Often the purchasing country makes its purchases conditional on the transfer of technology and patents, so that it can ultimately manufacture the items for itself and others. The result is the proliferation around the world not just of weapons but of new weapons industries. On January 10, 1995, former CIA director James Woolsey told Congress that weapons sales “have the potential to significantly alter military balances, and disrupt U.S. military operations and cause significant U.S. casualties.”32 Yet on August 27, 1998, in a typical example of the Pentagon shaping—or misshaping—foreign policy through arms sales, the Department of Defense announced the sale of several hundred missiles and antisubmarine torpedoes to Taiwan for $350 million. China naturally denounced the sale as a violation of agreements it had with the United States. The Defense Department’s response was, “The proposed sale of this military equipment will not affect the basic military balance in the region.”33 If that is true, why sell the equipment in the first place? Was it merely to enhance the balance sheets of several defense corporations to which the Pentagon is closely tied? If it is not true, why even bother to suggest that the balance of power is of any interest to the Pentagon?
In August 1996, then Secretary of Defense Perry called for an end to a decades-old ban on arms sales to Latin America on the grounds that most countries in the region were now democracies, so it is inconceivable that they would use newly purchased arms against one another. A year later, on August 1, 1997, the White House announced, “In the past decade, Latin America has changed dramatically from a region dominated by coups and military governments to one of democracy and civilian control. . . . Some Latin American countries are now addressing the need to modernize their militaries.” The Clinton administration thereupon authorized the sale of advanced American weapons to any and all buyers south of the border (except, of course, Cuba).
A staple of American thinking about foreign policy is that democracies pose no threat to other democracies. But if the countries of Latin America are now democracies, logically that should mean that they do not need to “modernize their militaries.” They might instead follow the example of Costa Rica, which since 1948 has had no military, only a civilian constabulary, and which is one of the most stable, peaceful countries in the area. Its former